Leifheit (LEI) Q2 2025 earnings summary

Executive summary

• H1 turnover fell 8.6% to €123.4m amid consumer restraint, portfolio adjustments, customer destocking and a major retail customer’s insolvency.

• EBIT was €2.0m, including €1.8m of production-optimisation items; EBIT before these items was €3.8m. Adjusted gross margin rose 0.9 pp to 45.3%.

• FY2025 guidance was reset to turnover 5%–8% below 2024, EBIT of €9m–€11m and free cash flow in the mid-single-digit millions.

Financial highlights

• H1 turnover was €123.4m versus €135.0m; reported EBIT was €2.0m versus €7.0m, while EBIT before production-optimisation items was €3.8m.

• Gross margin was 43.8%, down 0.6 pp; excluding production-optimisation items, it was 45.3%, up 0.9 pp YoY.

• Net result was €1.0m versus €4.7m; EBT was €1.4m versus €6.7m and EPS was €0.11 versus €0.50.

• Q2 EBIT was -€1.1m versus €3.6m; excluding production-optimisation items, Q2 EBIT was €0.7m versus €3.6m.

• Operating cash flow was -€0.4m and free cash flow -€4.1m, versus €11.7m and €9.9m, respectively, in H1 2024.

Outlook and guidance

• FY2025 turnover guidance shifted from growth of 2%–4% to a decline of 5%–8%; EBIT guidance fell from €15m–€17m to €9m–€11m, and free cash flow is expected in the mid-single-digit millions.

• H2 sales and earnings are expected to improve, supported by targeted marketing, SUPERDUSTER, D2C expansion, gross-margin improvement and cost reductions; high retailer inventories are delaying repeat orders.

• FY2025 turnover is forecast to decline by a mid-single-digit percentage in Household, a lower double-digit percentage in Wellbeing and a mid-single-digit percentage in Private Label.

• Mid-term targets include sales growth of ~3%–6% CAGR and an EBIT margin of ~7%–10%; Vision 2030+ targets sales above €300m and EBIT above 10%.